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Mid-Day ETF Update: ETFs Firmer, Stocks Continue to Post Gains on Optimism EU Leaders Will Act to Contain Debt Crisis

By Midnight Trader August 21, 2012, 01:30:39 PM EDT

Active broad-market exchange-traded funds at mid-day:

SPDR S&P 500 ( SPY ): +0.03%; touched new 52-week high of $143.09

iShares Russell 2000 Index ( IWM ): +0.3%

iPath S&P 500 VIX Short Term Futures TM ( VXX ): -0.09%; sank to a new year low of $11.03

Financial Select Sector SPDR ( XLF ): +0.86%

PowerShares QQQ Trust, Series 1 ( QQQ ): -0.41%, but earlier reached a new year high of $68.88

Broad Market Indicators

Broad-market exchange-traded funds, including SPY, IWM, IVV and others, are mixed to firmer. Actively traded PowerShares QQQ ( QQQ ) is down 0.4%, but earlier hit a new year high of $68.88.

U.S. stocks are firmer, tracking European markets higher. The S&P 500 index climbed to a four-year high, as investors are encouraged by earlier comments from EU leaders that they will implement actions to contain the region's debt crisis. Hopes are also high that the European Central Bank will pull down borrowing costs for struggling EU countries.

Winners and Losers

Financial -

Select Financial Sector SPDRs ( XLF ) is up 0.86%. Direxion Daily Financial Bull 3X shares (FAS) is up 1.9%. Its bearish counterpart, FAZ, is down 2% and earlier hit a new year low $19.55.

Among actives in the sector, Citigroup Inc. (C) is up 2.9% after Bloomberg reports it has become the first Western bank to issue credit cards in China without co-branding from a local financial institution as the government relaxes restrictions in the world's second-largest economy. According to the report, the cards will be denominated in yuan or dollars and accepted worldwide.

Technology -

ETFs in the tech space are mixed: Technology Select Sector SPDR ETF (XLK), down 0.6% having earlier hit new year highs; iShares Dow Jones US Technology ETF (IYW), down 0.6%; and iShares S&P North American Technology-Software Index (IGV), up 0.4%. Shares S&P North American Technology ETF (IGM) is flat.

Semiconductor ETFs are higher: SPDR S&P Semiconductor (XSD), up 0.4%; and Semiconductor Sector Index Fund (SOXX), up 0.27%.

SPDR S&P International Technology Sector ETF (IPK) is flat.

Among tech stocks, Daktronics (DAKT) is up near 18% after the company reported that in Q1 sales were $133 mln, vs. the analyst consensus of $122 mln on Capital IQ. EPS was $0.16. The Street was at $0.05 per share, but this may not be comparable. The company also said that because of the record level of orders it booked during the quarter, it expects net sales in Q2 FY13 to exceed the level of net sales in the comparable quarter in FY12.

Energy -

Dow Jones U.S. Energy Fund (IYE) is up 0.4%; Energy Select Sector SPDR (XLE) is up 0.3%.

Among stocks, Rex Energy Corp (REXX) is up 9.5%. Analysts at Capital One upgraded the natural gas company - which has interests in the Utica Shale of western Pennsylvania and eastern Ohio - to Strong Buy from Add.

Commodities -

Crude was up more than 1% while natural gas was up 0.83%. United States Oil Fund (USO) is up 1.4%; United States Natural Gas Fund (UNG) is up 1.1%.

Gold was up a little above 1%; silver was up around 2%. Among rare metal funds, SPDR Gold Trust (GLD) is up 1.2%; and iShares Silver Trust (SLV) is up 2.3%.

Among stocks, Paramount Gold and Silver (PZG) is up 1% after reporting results from seven core holes drilled in its San Miguel Project in Mexico. The company said the new holes continued to return gold and silver mineralization.

Healthcare -

Healthcare and biotech ETFs are ticking higher: Health Care SPDR (XLV), up 0.1% to near year highs; iShares NASDAQ Biotechnology Index (IBB), up 0.05%; Vanguard Health Care ETF (VHT), up 0.1% and edging nearer to year highs; and iShares Dow Jones US Healthcare (IYH), up 0.05% and nearer to year highs.

In corporate news, ImmunoCellular Therapeutics Ltd. (IMUC) is down near 17% after the oncology biotech company selected Dr. John S. Yu as its interim CEO, replacing Manish Singh, who resigned on Monday. Yu also will continue in his role as Chief Scientific Officer and board chairman during the search for a permanent chief executive. Singh had been CEO at IMUC since 2008 and previously had managed medical-industry investments for a venture-capital firm.

Power Play -

Consumer -

Consumer ETFs are mostly higher: iShares Dow Jones US Consumer Goods (IYK), up 0.07% to near year highs; and Vanguard Consumer Staples ETF (VDC), up 0.07% and nearer to year highs. Consumer Staples Select Sector SPDR (XLP) is down 0.14% having touched a year high earlier.

Retail ETFs are also firmer: SPDR S&P Retail (XRT), up 0.31%; PowerShares Dynamic Retail (PMR), up 0.24%; and Market Vectors Retail ETF (RTH), up 0.09% and has struck new year highs.

Dex One Corporation (DEXO) continues to climb higher, now up near 34%, adding to pre-market gains of more than 20% after the company announced that it will merge with SuperMedia Inc. (SPMD) in a stock-for-stock merger of equals, creating a national provider of social, local and mobile marketing solutions through direct relationships with local businesses. Upon closing of the transaction, Dex One shareholders are expected to own around 60% and SuperMedia shareholders are expected to own approximately 40% of the combined company. SPMD shares are also surging, now up near 50% and near a 52-week high of $4.24.

Also moving on earnings news, Best Buy Co. Inc. (BBY) is down 1.7% but is off the new 52-week low of $16.25 hit earlier after the electronics retailer reported Q2 adjusted earnings of $0.20 per share, missing analyst estimates by $0.11. Revenues declined nearly 3% to $10.55 billion, trailing consensus expectations by $80 million. BBY is suspending its forward guidance, citing reduced expectations for industry-wide sales and uncertainty about various product introductions.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Commodities

Referenced Stocks: IWM, QQQ, SPY, VXX, XLF



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